Europe Lithium-ion Battery for Electric Vehicle Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 18.56 Billion |
| Market Size (2029) | USD 44.11 Billion |
| CAGR (2024 - 2029) | 18.90 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe Lithium-ion Battery for Electric Vehicle Market Analysis
The Europe Lithium-ion Battery For Electric Vehicle Market size is estimated at USD 18.56 billion in 2024, and is expected to reach USD 44.11 billion by 2029, growing at a CAGR of 18.90% during the forecast period (2024-2029).
- Over the medium term, the increasing adoption of electric vehicles across Sweden, Finland, and the United Kingdom and supportive government policies and initiatives are expected to drive the demand for the lithium-ion battery in electric vehicles market during the forecast period.
- On the other hand, the emerging alternative battery technologies and the demand-supply mismatch of raw materials are expected to hinder the market's growth during the forecast period.
- Nevertheless, the increasing adoption of solid-state lithium-ion batteries for electric vehicles is anticipated to create vast opportunities for lithium-ion batteries in the European electric vehicles market.
- The United Kingdom is expected to dominate the lithium-ion battery for electric vehicles market due to the increasing adoption of electric vehicles in the country.
Europe Lithium-ion Battery for Electric Vehicle Market Trends
Battery Electric Vehicles (BEVs) Segment to Witness Significant Growth
- Battery electric vehicles (BEVs) are also commonly known as electric vehicles with an electric motor. BEVs are fully electric vehicles that typically do not include an internal combustion engine (ICE), fuel tank, or exhaust pipe and rely on electricity for propulsion. The vehicle's energy comes from the battery pack, which is recharged from the grid. BEVs are zero-emission vehicles, as they do not generate harmful tailpipe emissions or air pollution hazards caused by traditional gasoline-powered vehicles.
- According to the International Energy Agency (IEA), battery electric vehicle sales in Europe amounted to 2.2 million units in 2023. Various vehicle types are now available across European countries, featuring increasing degrees of hybridization and electrification. There are various types of vehicles, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles, and electric vehicles (EVs).
- Moreover, as the initiator of the Paris Climate Pact, Europe promoted the shift from internal combustion vehicles to EVs while registering high growth over recent years. Such developments, in turn, create avenues for the penetration of lithium-ion batteries in the region.
- Several countries, including the United Kingdom, Germany, and France, are rolling out initiatives such as tax credits and subsidies to drive the adoption of battery electric vehicles (BEVs). In tandem, numerous states are setting aggressive goals to phase out internal combustion engine (ICE) vehicles in favor of electric cars. Consequently, this surge in BEV adoption is poised to significantly elevate the demand for lithium-ion batteries over the coming years.
- Several governments across European countries plan to boost the adoption of EVs in the coming years. In May 2024, the French government set a goal for the nation's carmakers to produce two million electric or hybrid vehicles by the end of the decade. Under a new medium-term planning agreement with the government, the industry is set to agree to an interim goal of 800,000 electric vehicle sales by 2027, according to a Finance Ministry briefing.
- Also, several carmakers aim to increase sales of electric light utility vehicles to 100,000 annually over the same period. Such developments are expected to create a vast demand for rechargeable EV batteries, such as lithium-ion batteries, to support the growing number of battery electric vehicles on European roads.
- Due to the abovementioned factors, the BEV segment is expected to witness significant growth over the forecast period.
United Kingdom Expected to Dominate the Market
- The UK electric vehicle industry has experienced rapid growth, significantly propelled by government regulations and incentives aimed at reducing carbon emissions and promoting sustainable transport. The UK government has set ambitious targets, such as the ban on new petrol and diesel cars by 2030, under its broader strategy to achieve net-zero emissions by 2050.
- To support this transition, the government has implemented various incentives, including grants for electric cars and subsidies for home and public charging infrastructure. These policies have not only eased the financial burden on consumers but have also encouraged manufacturers to increase their offerings of electric models.
- Furthermore, according to the International Energy Agency (IEA), the sales of battery electric vehicles in the United Kingdom stood at 0.3 million units in 2023. Also, the UK government has focused on expanding the necessary infrastructure to support electric vehicles and battery infrastructure, which is crucial for widespread adoption. This includes substantial investments in charging networks across the nation, with the aim to significantly increase the number of fast-charging stations. Policies such as reduced parking fees for EVs and exemptions from congestion charges in urban areas like London have further boosted the attractiveness of electric vehicles. The government's commitment is evident in its backing of projects like the Electric Vehicle Homecharge Scheme (EVHS), which provides funding for home charger installations, enhancing the practicality of owning an EV.
- Moreover, in November 2023, the UK government announced the EUR 2 billion (USD 2.5 billion) Advanced Manufacturing Plan, which includes a new Battery Strategy that will see EUR 50 million of government funding allocated to deliver a globally competitive battery supply chain by 2030. The move aims to build supply chain resilience as vehicle makers localize battery production in support of the increasing transition to the production of battery electric vehicles (BEVs).
- Moreover, manufacturers are responding to the supportive regulatory framework by committing to electric-only production lines and investing in local manufacturing of EVs and batteries, indicating a robust future trajectory for the UK electric vehicle batteries industry.
- Therefore, as per the abovementioned points, the United Kindom is expected to be the dominant country in the European lithium-ion battery for electric vehicles market during the forecast period.
Europe Lithium-ion Battery for Electric Vehicle Industry Overview
The European lithium-ion battery for electric vehicles market is semi-fragmented. Some key players in the market include Panasonic Holdings Corporation, Faradion Limited (UK), Contemporary Amperex Technology Co. Ltd (CATL), LG Energy Solution Ltd, and Northvolt AB.
Europe Lithium-ion Battery For Electric Vehicle Market Leaders
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Contemporary Amperex Technology Co. Ltd (CATL)
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LG Energy Solution Ltd
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North Volt AB
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Faradion Limited (U.K.)
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Panasonic Holdings Corporation
*Disclaimer: Major Players sorted in no particular order
Europe Lithium-ion Battery For Electric Vehicle Market News
- November 2023: Northvolt, a European EV battery maker, announced a breakthrough in battery development. The company manufactured a first-of-its-kind energy storage battery by replacing widely used critical minerals such as lithium, cobalt, nickel, and graphite.
- May 2023: The Government of France announced plans to launch its first battery factory for electric cars. The construction of the battery industry is part of France's reindustrialization plan. The gigafactory in Billy-Berclau is owned by Automotive Cells Company, a partnership between energy giant TotalEnergies, Mercedes-Benz, and Stellantis, which produces a range of brands including Fiat, Peugeot, and Chrysler.
Europe Lithium-ion Battery for Electric Vehicle Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast, in USD, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Declining Lithium-ion Battery Prices
4.5.1.2 Increasing Adoption of Electric Vehicles
4.5.2 Restraints
4.5.2.1 Emerging Alternative Battery Technologies
4.6 Supply Chain Analysis
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Vehicle Type
5.1.1 Passenger Vehicles
5.1.2 Commercial Vehicles
5.1.3 Other Vehicles (Bikes, Scooters, etc.)
5.1.4
5.2 Propulsion Type
5.2.1 Battery Electric Vehicles (BEVs)
5.2.2 Plug-in Hybrid Electric Vehicles (PHEVs)
5.2.3 Hybrid Electric Vehicles (HEVs)
5.3 Geography
5.3.1 Germany
5.3.2 France
5.3.3 United Kingdom
5.3.4 Italy
5.3.5 Spain
5.3.6 NORDIC
5.3.7 Russia
5.3.8 Turkey
5.3.9 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Panasonic Holdings Corporation
6.3.2 Faradion Limited (UK)
6.3.3 Contemporary Amperex Technology Co. Ltd (CATL)
6.3.4 LG Energy Solution Ltd
6.3.5 Northvolt AB
6.3.6 BMZ GmbH
6.3.7 Saft Groupe SA
6.3.8 FIAMM Energy Technology
6.3.9 VARTA AG
6.3.10 Samsung SDI Co. Ltd
6.3.11 Tesla Inc.
- *List Not Exhaustive
6.4 List of Other Prominent Companies (Company Name, Headquarter, Relevant Products & Services, Contact Details, etc.)
6.5 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Adoption of Solid-state Lithium-ion Batteries for Electric Vehicles
Europe Lithium-ion Battery for Electric Vehicle Industry Segmentation
A lithium-ion battery for electric vehicles (EVs) is a rechargeable battery commonly used to power electric cars and other electric transportation. Lithium-ion batteries comprise cells containing an anode, cathode, separator, and electrolyte. These batteries offer a high power-to-weight ratio, excellent energy efficiency, and reduced self-discharge compared to other rechargeable batteries, making them a preferred choice for modern electric vehicles.
The European lithium-ion battery for electric vehicles market is segmented by vehicle type, propulsion type, and geography. By vehicle type, the market is segmented into passenger vehicles, commercial vehicles, and other vehicles (bikes, scooters, etc.). By propulsion type, the market is segmented into battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs). By geography, the market is segmented into Germany, the United Kingdom, France, Italy, Spain, NORDIC, Russia, Turkey, and the Rest of Europe. The report also covers the market sizes and forecasts in terms of value (USD) for all the above segments.
| Vehicle Type | |
| Passenger Vehicles | |
| Commercial Vehicles | |
| Other Vehicles (Bikes, Scooters, etc.) |
| Propulsion Type | |
| Battery Electric Vehicles (BEVs) | |
| Plug-in Hybrid Electric Vehicles (PHEVs) | |
| Hybrid Electric Vehicles (HEVs) |
| Geography | |
| Germany | |
| France | |
| United Kingdom | |
| Italy | |
| Spain | |
| NORDIC | |
| Russia | |
| Turkey | |
| Rest of Europe |
Europe Lithium-ion Battery for Electric Vehicle Market Research FAQs
How big is the Europe Lithium-ion Battery For Electric Vehicle Market?
The Europe Lithium-ion Battery For Electric Vehicle Market size is expected to reach USD 18.56 billion in 2024 and grow at a CAGR of 18.90% to reach USD 44.11 billion by 2029.
What is the current Europe Lithium-ion Battery For Electric Vehicle Market size?
In 2024, the Europe Lithium-ion Battery For Electric Vehicle Market size is expected to reach USD 18.56 billion.
Who are the key players in Europe Lithium-ion Battery For Electric Vehicle Market?
Contemporary Amperex Technology Co. Ltd (CATL), LG Energy Solution Ltd, North Volt AB, Faradion Limited (U.K.) and Panasonic Holdings Corporation are the major companies operating in the Europe Lithium-ion Battery For Electric Vehicle Market.
What years does this Europe Lithium-ion Battery For Electric Vehicle Market cover, and what was the market size in 2023?
In 2023, the Europe Lithium-ion Battery For Electric Vehicle Market size was estimated at USD 15.05 billion. The report covers the Europe Lithium-ion Battery For Electric Vehicle Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Lithium-ion Battery For Electric Vehicle Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Lithium-ion Battery for Electric Vehicle Industry Report
Statistics for the 2024 Europe Lithium-ion Battery For Electric Vehicle market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Lithium-ion Battery For Electric Vehicle analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
